The Risks from Allowing Stablecoins to Pay Interest
Bank Policy Institute
"Stablecoins are digital assets designed to maintain a stable value, primarily pegged to the U.S. dollar. The recently passed GENIUS Act, prohibits stablecoin issuers from paying interest. There are at least two broad reasons to be concerned about potential rapid growth in stablecoins. First, if backed by government securities, stablecoins would reduce demand for bank deposits and thus the supply of bank credit .... "
